The silent surrender: how poor management is eroding German work ethic
There is despair at the grassroots level, which is increasingly manifesting itself in apathetic ‘working to rule’. The engine of the German economy, its dedicated employees, is sputtering badly. The cause is home-grown and lies in the boardrooms: a management that has excelled in making wrong decisions for decades and has completely lost the hands-on, risk-taking entrepreneurial spirit of yesteryear.
Frustration at the grassroots level: just working to rule
The figures from the renowned Gallup Engagement Index for Germany are alarming. A record low in employees' emotional attachment to their employers has been reached. Almost eight out of ten people are now just doing their job. This ‘inner resignation’ is more than just a buzzword; it is a symptom of deep frustration and disillusionment. The resulting productivity losses run into the billions.
According to a study, the main reasons for this state of affairs are low pay and, above all, a lack of appreciation. Employees feel invisible, their performance unrecognised and their concerns ignored. It is a toxic mix that stifles commitment.
The management dilemma: fear of risk and responsibility
A key problem is the lack of risk-taking in management. Many of today's CEOs are essentially just salaried administrators who are more concerned with not making mistakes than seizing business opportunities. The fear of failure paralyses innovation and leads to a management style that focuses on control and risk minimisation rather than trust and empowerment.
This risk-averse attitude stands in stark contrast to the image of the traditional, roll-up-your-sleeves entrepreneur who was willing to take risks for his vision. Today, the motto is often to secure one's own position, which prevents courageous, unconventional and potentially groundbreaking decisions.
The critic as a scapegoat: a culture of silence
Anyone at the grassroots level who points out these shortcomings, criticises inefficient processes and demotivating leadership quickly becomes a ‘scapegoat’ and a ‘nest-fouler’. Instead of viewing the comments as valuable feedback, uncomfortable employees are seen as troublemakers and are often weeded out. According to Gallup, one in three employees has concealed serious concerns about their manager in the past twelve months – for fear of negative consequences.
There is a culture in which open and honest feedback is not welcome because it could tarnish the corporate headquarters' image. The gap between managers' self-perception and how they are perceived by employees is often enormous.
Whistleblowing laws: a toothless tiger?
Even new laws such as the Whistleblower Protection Act (HinSchG) are unlikely to change this deeply rooted culture. Although they are intended to protect employees who expose wrongdoing, what use is a law if the corporate culture does not support it? As long as there is no genuine interest on the part of management in establishing an open culture of error and criticism, such regulations often remain nothing more than a fig leaf. The fear of reprisals will remain, and the willingness to report internal misconduct is likely to remain limited, especially since an obligation to allow anonymous reports has not been enshrined in law.
Conclusion: The German economy is not only suffering from external challenges such as the shortage of skilled workers. A significant part of the problems is internal and structural. A management culture that systematically stifles commitment, shies away from risk and silences critics is sawing off the branch it is sitting on. Without a radical U-turn in the boardrooms towards more trust, appreciation and entrepreneurial courage, ‘working to rule’ threatens to become the new German standard – with devastating consequences for prosperity and future viability.
